CHAPTER 13 Human Resource Management HUMAN RESOURCE MANAGEMENT

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CHAPTER 13: Human Resource Management

CHAPTER 13: Human Resource Management

HUMAN RESOURCE MANAGEMENT (HRM) • (HRM) is a system of recruiting employees to the

HUMAN RESOURCE MANAGEMENT (HRM) • (HRM) is a system of recruiting employees to the business. They are then trained, developed and rewarded for their efforts.

Functions of an HR Manager

Functions of an HR Manager

1 HUMAN RESOURCE PLANNING • HR planning ensures that the business has the correct

1 HUMAN RESOURCE PLANNING • HR planning ensures that the business has the correct number of staff with the necessary skills and qualifications to fill all vacancies in the business.

1 HUMAN RESOURCE PLANNING Step 1: Review Current • The HR manager reviews the

1 HUMAN RESOURCE PLANNING Step 1: Review Current • The HR manager reviews the current staff numbers and each staff member’s qualifications, skills and Staff experience. Step 2: Forecast Human • The HR manager estimates the number of employees and the types of skill that will be needed to fill all future Resource Needs roles. Step 3: Estimate Labour • The HR manager estimates the number of employees who will leave the business. Turnover Step 4: Create an HR Plan • The HR manager formulates a plan to ensure that the firm has the correct number of employees with the required skills when needed. Step 5: Review the Plan • The HR plan should be reviewed regularly. If the plan does not meet the needs of the business, changes can be made.

Benefits of Human Resource Planning Training needs Enough staff Labour turnover

Benefits of Human Resource Planning Training needs Enough staff Labour turnover

2 RECRUITMENT AND SELECTION • Recruitment: involves attracting suitable candidates with the relevant skills,

2 RECRUITMENT AND SELECTION • Recruitment: involves attracting suitable candidates with the relevant skills, qualifications and experience to apply for a job vacancy. • Selection: the process of deciding which applicant is the most suitable for the advertised job vacancy.

The Recruitment and Selection Process

The Recruitment and Selection Process

A Job Description • This is a written outline of the job title, duties

A Job Description • This is a written outline of the job title, duties and responsibilities associated with the role. It may include details of pay and the person to whom the employee will report.

A Job Description

A Job Description

B Person Specification • This sets out the ideal candidate for the job vacancy.

B Person Specification • This sets out the ideal candidate for the job vacancy. • It outlines the qualifications, skills, characteristics and experience needed by the person to fill the role.

C Job Advertisement • The HR manager creates a job advertisement based on the

C Job Advertisement • The HR manager creates a job advertisement based on the job description and person specification. • The vacancy should be advertised in a location that will be seen by the largest number of potential candidates.

C Job Advertisement The advertisement usually contains the following information: • Main duties of

C Job Advertisement The advertisement usually contains the following information: • Main duties of the advertised role • Qualifications and skills required • Pay and benefits. • Location of the job • Method by which candidates should apply.

D Screening Candidates • The HR manager matches the job applications received against the

D Screening Candidates • The HR manager matches the job applications received against the job description and person specification. • A shortlist is made of suitable candidates. • Applications that do not meet the criteria are rejected.

E Selection Tests • The HR manager may conduct a range of selection tests

E Selection Tests • The HR manager may conduct a range of selection tests to further shortlist the candidates. Intelligence tests • measure numerical and language reasoning Personality tests • identify whether the candidate’s personality is suitable for the job advertised Work sample tests • candidates perform sample jobs to identify whether they have the necessary skills for the role

F Interview • A formal meeting between the applicant and representative(s) of the company,

F Interview • A formal meeting between the applicant and representative(s) of the company, e. g. the HR manager.

F Interview One-to-one interviews • take place between the candidate and a representative of

F Interview One-to-one interviews • take place between the candidate and a representative of the business. Panel interviews • involve the candidate and a number of interviewers, e. g. the HR manager and the manager of the relevant department.

G Reference Check • The HR manager conducts a reference check on the candidates

G Reference Check • The HR manager conducts a reference check on the candidates who performed best at interview. • The reference is usually provided by someone who can confirm the education and work experience details given by the candidate. H Job Offer • The HR manager makes a job offer to the successful candidate, usually by phone. • A formal job offer is then sent to the candidate in writing and it includes details such as the job title, salary and length of probationary period.

3 TRAINING AND DEVELOPMENT • Training is a process that ensures that employees have

3 TRAINING AND DEVELOPMENT • Training is a process that ensures that employees have the skills, knowledge and attitudes needed to carry out their jobs effectively.

A On-the-job Training This type of training takes place in the workplace. It can

A On-the-job Training This type of training takes place in the workplace. It can include: Work shadowing • Observing a more experienced staff member. Demonstration • Showing a new employee how to carry out their role. Job rotation • The new employee moves around the firm doing different jobs.

B Off-the-job Training • This type of training takes place in a venue outside

B Off-the-job Training • This type of training takes place in a venue outside the workplace and can include: workshops, demonstrations, lectures and courses.

Development • Development can include employees taking educational courses or developing career plans. It

Development • Development can include employees taking educational courses or developing career plans. It increases employees’ self-esteem and prepares them for promotion.

Advantages of Training and Development Increased productivity Employees have the correct skills and knowledge

Advantages of Training and Development Increased productivity Employees have the correct skills and knowledge to complete their duties effectively. Industrial relations Training and development ensures that employees understand the quality standards expected by management. This reduces industrial relations problems in the firm. Future managers Training and development prepares staff for management roles in the firm.

4 REWARDS • Financial Rewards: these are monetary payments received by employees for their

4 REWARDS • Financial Rewards: these are monetary payments received by employees for their workplace effort.

4 REWARDS • Non-financial rewards: rewards received by an employee that are not in

4 REWARDS • Non-financial rewards: rewards received by an employee that are not in the form of money.

5 PERFORMANCE APPRAISAL • Performance appraisal is a review of an employee’s performance and

5 PERFORMANCE APPRAISAL • Performance appraisal is a review of an employee’s performance and is usually carried out by the employee’s direct manager or the HR manager. Step 1 – Set performance targets Step 2 – Measure employee performance Step 3 – Performance appraisal meeting

Benefits of Performance Appraisal Training needs • It can help identify training needs for

Benefits of Performance Appraisal Training needs • It can help identify training needs for employees and these can be organised by the HR manager Promotion • It can help the HR manager to identify candidates for future promotion Performance-related pay • It can be used to decide on financial and nonfinancial rewards for employees Employee motivation • As employees know that their work is monitored, they may be more motivated to work harder Industrial relations • Employees can highlight problems in the business during a performance appraisal

6 EMPLOYER–EMPLOYEE RELATIONSHIPS • Positive HR relationships can result in increased staff productivity, less

6 EMPLOYER–EMPLOYEE RELATIONSHIPS • Positive HR relationships can result in increased staff productivity, less industrial action and improved recruitment and retention of staff.

6 EMPLOYER–EMPLOYEE RELATIONSHIPS • Regular face-to-face meetings enable the business Honest to communicate with

6 EMPLOYER–EMPLOYEE RELATIONSHIPS • Regular face-to-face meetings enable the business Honest to communicate with staff openly and honestly communication Training • Training can improve employees’ skills and knowledge so that they can perform their duties to a high standard Social activities • HR managers organise social activities, e. g. sports events, to meet Maslow’s social needs Health and safety Grievance procedure • The HR manager ensures that the work environment is healthy and safe for all staff • The HR manager is responsible formulating a grievance procedure to deal with staff complaints

Benefits of Good Employer–Employee Relationships Employee motivation Lowers absenteeism Employee recruitment and retention

Benefits of Good Employer–Employee Relationships Employee motivation Lowers absenteeism Employee recruitment and retention

Key Terms • • • human resource management (HRM) human resource manager human resource

Key Terms • • • human resource management (HRM) human resource manager human resource planning labour turnover recruitment selection job description person specification selection tests interview reference check • • • CV cover letter application form equal opportunities employer internal recruitment external recruitment training development on-the-job training off-the-job training induction training

Key Terms • • • financial rewards time rate piece rate Salary commission bonus

Key Terms • • • financial rewards time rate piece rate Salary commission bonus employee profit-sharing employee share purchase plan (ESPP) employer–employee relationships • • non-financial rewards benefit-in-kind (BIK) job enlargement job enrichment job sharing flexitime performance appraisal

CREDIT SLIDE • Shutterstock • i. Stockphoto. com

CREDIT SLIDE • Shutterstock • i. Stockphoto. com